2021’s Top 4 Business Opportunities in Indonesia for Foreigners

Countless business opportunities in Indonesia have turned the country into one of the most popular destinations in the world for eye-catching business setups and formations.

With the increase of population and so much development over the decade, business startups have also risen with specific sectors standing out from the crowd.

Various government policies have been released in recent years to encourage upcoming entrepreneurs and investors to establish their companies in Indonesia.

Here are the top 4 business opportunities you can consider for investment in Indonesia.

Top 4 Business Opportunities in Indonesia for Foreigners in 2021

1. Travel Agency

With over 17,000 islands in Indonesia, the country offers diverse landscapes and purposes to augment global visitors’ traveling experience.

Therefore, the tourism industry is thriving and provides many business opportunities for investors. More than 16 million foreign tourists visited Indonesia in 2019 alone.

The tourism sector and its potential business opportunities in Indonesia, particularly travel agencies, are destined to grow continuously especially now the Indonesian government allows foreigners of 169 countries to visit Indonesia without having to apply for a visa.

Here’s how you can start a travel agency in Indonesia:

1. Choose your business structure.
2. Get a name for your business.
3. Register your travel agency under the Tourism Law 2009 and Standard of Business Tourism Area 2014 Law 17.
4. Obtain a Business Certification of the Tourism Sector.

2. Manufacturing

Manufacturing has always been one of the most important industries that have the most impact on Indonesia’s economy, according to a large amount of foreign direct investment pouring into the country every year.

This promising industry seems to blossom rapidly especially when the Indonesian government has simplified permit and licensing processes and provides incentives for investments.

Indonesia is ranked 10th as the largest manufacturing country in the world and this sector has employed more than 20% of the country’s working-age population, approximately 25 million.

Therefore, thanks to its abundant and low-cost workforce, as well as the fast-growing middle class, now is the time for foreigners to take advantage of this ever-growing manufacturing industry.

To start a manufacturing company, this is what you should do:

1. Pick an ideal location such as an industrial area for factory construction.
2. Apply for the master facility list, which is an exemption for factory equipment’s import taxes.
3. Obtain a permanent business license.

3. Construction

Another dynamic sector that serves as one of the best business opportunities in Indonesia is the construction industry.

The Indonesian president also prioritizes this sector and spent IDR 404 million in 2018 on several different construction projects especially on infrastructure such as airports, roads, power plants, and railways across the country.

One thing leads to another, thus complete infrastructure also means to speed up the country’s development and more business opportunities in Indonesia will start to emerge as sub-sectors or other related sectors.

So how to start a construction business in Indonesia? We’ll show you how:

1. Know the right types of construction services your company will be involved in.
2. Pick a legal structure.
3. Register and incorporate your construction business.
4. Get the correct type of business license and related certifications. For example, expertise certificate (SKA), business entity certificate (SBU), and construction services business license (IUJK).

4. E-Commerce

E-commerce in Indonesia had stunning results in 2019: the sales volumes were US$2.7 billion. The country also has the highest online market transactions in entire Southeast Asia. The Indonesian e-commerce market was expected to grow to US$1130 billion in 2020.

The process to set up an e-commerce business in Indonesia:

1. Acquire a business license.
2. Fulfill business requirements, i.e. obtain a tax number, a technical license, and a company registration license.
3. Assist in governmental programs.
4. Submit valid and honest information regarding the owner, goods and services, etc.

How Cekindo Can Assist

At Cekindo, we provide end-to-end business services on company formation and registration in Indonesia.

Be it a small company or a large-scale business venture, we are an authorized company setup agent that provides quality services and consultations to new and existing clients.

Also, with so many business opportunities in Indonesia, Cekindo can pinpoint which one suits you the best based on your requirements and current circumstances.

During the formation and registration, we ensure that the entire process and paperwork handling is hassle-free, of the highest quality, always up-to-date, and compliant with the latest laws and legislations.

If you need any assistance, contact us via the form below.